Thursday’s Technical Analysis For: WTI Crude Oil
$USO
WTI Crude Oil closed lower Wednesday.
The low range close set the stage for a steady to lower open Thursday on NYMEX.
Stochastics and the RSI are turning Neutral to Bearish indicating that a short term top is in or close.
Closes below the 20-Day MA crossing will confirm that a short term top is in.
If WTI Crude Oil resumes the rally off of its August low, the 50% Fibo retrace mark of the May-August decline crossing is the next Northside target.
Crude Oil has fallen this year and US gasoline demand softened. WTI Crude Oil could fall to as low as 10 bbl as the Organization of Petroleum Exporting Countries (OPEC) engages in a “Price War” with rival producers, testing who will cut output 1st.
Iran is soon to release 53-M bbl to the market and will be producing up to 1.5-M BPD in 6 months or so.
Long term outlook for both Brent and WTI Crude Oil is due South.
OPEC says it will cut production, and are going to see who can stand lower prices longest, since October of 2014 HeffX-LTN sees that Crude Oil is likely is headed for 20 – 22 bbl in the mid term.
Stay tuned…
HeffX-LTN
Paul Ebeling
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